JUDGMENT

S.B. Sinha, J.—

1. Leave granted.

2. N.G.E.F. Employees House Building Cooperative Society Limited (for short, “the society”) is a society incorporated and registered under the Karnataka Cooperative Societies Act, 1959 (for short, “the Act”). Appellant herein was a Director of the society. He filed a complaint petition alleging inter alia that the respondents herein who were the office-bearers of the society, earned a huge amount for themselves by alloting a site bearing No. 509 measuring 30' x 40' for a sum of Rs. 2,40,000/- to one Gopal, a name lender who in turn, sold the said site for a sum of Rs. 28,00,000/- to one Hanumanthegowda by a deed of sale dated 3.7.2006. However, in the sale deed, the consideration amount was shown as Rs.10,20,000/-.

It was contended that the respondents in connivance with the said Gopal made illegal gain as the market value of the said property was about Rs.28 lakhs.

3. The following facts are admitted.

The land in question was acquired in the year 1985-86. The society formed a layout and sites were allotted to its members. However, few sites remained vacant. One of the persons whose lands were acquired for the society, namely, Munivenkatap